81 Iranian Car Makers Merge

Khodrocar – 50 years ago Iran joined the global automotive industry and more precisely, Iranian automakers started to assemble vehicles.

According to Chief of the Chamber of Commerce, Iran now has 81 automakers.

The global automakers integrate with each other in order to reduce the costs of develop, design and after sales services. 

This is while the Iranians companies assemble the foreign automakers’ products.

The main question is: Regarding the integration of the automakers in Iran, will they be able to discontinue the old platforms and make the current situation better for themselves?

Farbod Zaveh, an automotive industry expert, stated that all global solutions are useless for Iran’s automotive market and told Khodrocar journalist regarding the issue: Globally, the main reason for the integration of major automakers is in order to reduce the high cost of designing and developing a product.

He added: Globally, there are 60 automakers with only 20 owners, except Chinese. These companies participate with each other in order to reduce the production costs. But the situation is different in Iran. In a country which the automakers just assemble vehicles, their integration means nothing. 

Zaveh mentioned the negative aspects of automakers’ independence and said: An integration occurred once in past years and nothing special has happened. Instead of integration, the automakers should consider changing management methods. Governmental management puts a lot of pressure on companies.

He mentioned: Due to the policies that The Ministry of Industry, Mining and Trade sets for the automakers in Iran, there are no interests in free and competitive markets.

Farbod Zaveh emphasized that monopoly is like a poison for auto industry and said: Creating a competitive atmosphere will help the auto industry and if this situation remains, integration of automakers will be completely ineffective.

Khidrocar Translator: Maziyar Jafariye